The Changing Face of Political Leadership The Increasing Importance of Civil Society

24th - 28th November 2017

Organization of American States

Study Guide

Simon Bosmas

Ana María Buttkus Ocampo Richard Garcia Guerrero

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WORD OF WELCOME

Honorable Delegates,

Welcome/Bienvenidos/Bienvenue to Bonn International Model United Nations

2017, and thank you for your interest in participating in the Organization of American

States (OAS) committee!

The OAS is special within BIMUN in that it is the only committee to be run in

several languages: English, Spanish, and French. We are excited to see how this

dynamic will play out in committee, as this practice along with the presence of live

translators from the TH Köln will more closely reflect what occurs in the real OAS.

During this conference, we will tackle head-on the preponderant issues

currently affecting the Americas. Our two topics seek to address the deepest concerns

OAS Member States have within the bloc. “Review of Actions Against Corruption” will

touch on one of the Americas’ most prevalent topics: how to abate corruption and its

effect in global issues through coordination and collaboration among OAS Member

States. On the other hand, “Restoring Peace in the Bolivarian Republic of Venezuela”

will target the escalating state of crisis under President Nicolas Maduro’s regime, and

how to implement the values of the OAS unto a state desperate for a change towards

economic prosperity and social stability.

This committee will have three chairs:

I, Ana María, finished my bachelor’s degree in law in context at the TU-Dresden

this summer and continued my legal studies at the Westfälische Wilhelms Universität

Münster.

I, Simon, finished my bachelor’s degree in political science last year and am

now pursuing a master’s degree in comparative and international politics in KU

Leuven.

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Lastly, I, Richard, am an undergraduate student from California State

University, Long Beach in my final semester towards receiving two bachelor’s

degrees: one in International Studies and another in Economics.

We expect to see a lot of negotiating, deliberating, teamwork, and above all an

enriching experience that we hope you will take with you wherever your endeavors

take you after the conference.

Looking forward to working with you,

Ana María Buttkus Ocampo

Simon Bosmans

Richard Garcia Guerrero

Chairs, Organization of American States

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TABLE OF CONTENTS WORD OF WELCOME ........................................................................................................ 2

Committee Overview: Organization of American States .................................................... 5 History & Membership ............................................................................................................. 5 Mandate .................................................................................................................................. 6

Topic A: Restoring Peace in the Bolivarian Republic of Venezuela...................................... 7 Introduction ............................................................................................................................ 7 History and Main Actors ........................................................................................................... 8 Definition of Terms and Legal Instruments .............................................................................. 10 International Response .......................................................................................................... 11 International Monetary Fund (IMF) & World Bank (WB) .......................................................... 11 Non-government organizations (NGOs) .................................................................................. 12 Foreign Heads of State ........................................................................................................... 12 Current Challenges ................................................................................................................. 13 The Maduro Regime ............................................................................................................... 13 Questions an Outcome Document Should Answer .................................................................. 14 Further Readings .................................................................................................................... 15 Bibliography .......................................................................................................................... 16

TOPIC B: Review of the Actions Against Corruption (IACAC and MESICIC) ........................ 18 Introduction .......................................................................................................................... 18 History and main actors ......................................................................................................... 19 International Response .......................................................................................................... 20 Current challenges ................................................................................................................. 22 Questions an Outcome Document Should Consider ................................................................ 22 Further readings .................................................................................................................... 23 Bibliography .......................................................................................................................... 24

Sample Outcome Document ........................................................................................... 26

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Committee Overview: Organization of American States

History & Membership

The OAS is the world’s oldest regional organization, dating back to the First

International Conference of American States, held in Washington, D.C., in 1889-1890.

That meeting approved the establishment of the International Union of American

Republics, and the stage was set for the weaving of a web of provisions and

institutions that came to be known as the inter-American system, the oldest

international institutional system. The Organization was established to achieve among

its Member States—as stipulated in Article 1 of the Charter of the Organization of

American States — "an order of peace and justice, to promote their solidarity, to

strengthen their collaboration, and to defend their sovereignty, their territorial integrity,

and their independence"1. Furthermore, Article 3 of that same Charter guarantees

interregional security through compliance with several values and sets of rules

including broader standards like good faith and solidarity between nations, national

self-determination and territorial integrity, the principle of non-aggression, economic

cooperation and non-discrimination, as well as social justice. The OAS uses a four-

pronged approach to effectively implement its essential purposes and enforce the

respect of the aforementioned values, based on the main pillars of the OAS Charter:

democracy, human rights, security, and development.2 Current OAS Member States

are listed below. There are 69 permanent observer countries, which include the

European Union, the People’s Republic of China, the Holy See, and European states

with territories in the Americas such as Denmark and France.

Antigua & Barbuda Argentina Bahamas Barbados Belize Bolivia Brazil

Canada Chile Colombia Costa Rica Cuba Dominica Dominican Republic Ecuador El Salvador

Grenada Guatemala Guyana Haiti Honduras Jamaica Mexico Nicaragua Panama Paraguay Peru Saint Kitts and Nevis

Saint Lucia St. Vincent and the Grenadines Suriname Trinidad and Tobago United States Uruguay Venezuela

1 1 Organization of American States. 2001. Inter-American Democratic Charter. District of Columbia: Organization of American States. 2 Organization of American States (2017). About the OAS: Who We Are & What We Do. Official OAS Website. Retrieved August 26th, 2017, from http://www.oas.org/en/about/who_we_are.asp

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Mandate

The OAS is the premier political forum of the Americas, where the independent

countries of North, Central, and South America and the Caribbean come together to

advance their common goals and work out their differences. Political dialogue, the

Organization’s core concern, is important within each of the four pillars of the OAS –

democracy, human rights, security, and development. It was in the OAS, for example,

that the Member States of the Organization negotiated the Inter-American Democratic

Charter, a blueprint for what democracy should look like in the region. This included

establishing a framework on the rights of indigenous peoples, territorial disputes, or

regional goals for education. The OAS is where multilateral dialogue takes place at

many levels, such as the Permanent Council, ministerial meetings, and the Summits

of the Americas process.3 Through the OAS, the countries have adopted multilateral

treaties that have solidified relations in the region and helped shape domestic law on

matters as diverse as preventing illegal arms trafficking and strengthening the rights

of persons with disabilities.4

Other than diplomatic consultation, political dialogue, and international

negotiations, the OAS also provides critical support to Member States in building

institutional and human capacity to meet new challenges. For example, the General

Secretariat has worked with Member States, at their request, to help implement

technical reforms of their electoral systems. It has also provided training for

government officials in areas as diverse as trade negotiations and natural disaster

mitigation. Hence, the OAS can go beyond simply providing advice and deliberation

about regional issues among Member States. The body has the tools necessary to

provide practical help in surmounting national challenges (as long as they are of

importance to the American continent as a whole), and offering resources and

personnel to help solve or remediate potentially problematic situations “on the

ground”.5 Lastly, the OAS has follow-up mechanisms to ensure that all OAS Member

States hold each other accountable on a range of issues including drug trafficking,

corruption and domestic violence.6

3 Organization of American States (2017). About the OAS: Political Dialogue. Official OAS Website. Retrieved August 26th, 2017, from http://www.oas.org/en/about/political_dialogue.asp 4 Organization of American States (2017). About the OAS: Juridical Heritage. Official OAS Website. Retrieved August 26th, 2017, from http://www.oas.org/en/about/juridical_heritage.asp 5 Organization of American States (2017). About the OAS: Cooperation. Official OAS Website. Retrieved August 26th, 2017, from http://www.oas.org/en/about/cooperation.asp 6 Organization of American States (2017). About the OAS: Follow-Up Mechanisms. Official OAS Website. Retrieved August 26th, 2017, from http://www.oas.org/en/about/mechanisms.asp

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Topic A: Restoring Peace in the Bolivarian Republic of Venezuela

Introduction

Crisis in Venezuela At-A-Glance

The Bolivarian Republic of Venezuela has found itself mired in social turmoil of

an international scale in recent years, reaching catastrophic proportions. Once a

vibrant democracy and an example to other countries within Latin America and the

world as an economic powerhouse, Venezuela is now recognized globally as

undergoing its most serious economic recession in several decades.

Towards the turn of the 20th century, Hugo Chávez was democratically elected

President by the Venezuelan people. His tenure saw an increase in oil prices, leading

to an expansion of the Venezuelan economy. The benefits of this windfall were

abruptly interrupted after his decease and transfer of power to the current President,

Nicolás Maduro. The sharp decrease in worldwide oil prices, coupled with the

mismanagement of government revenue through Venezuela’s state-owned oil and

natural gas company, Petróleos de Venezuela, S.A. (PDVSA) were some of the key

factors in accelerating Venezuela’s economic downfall.

In recent times, the sight of Venezuelans queuing for hours to purchase

government-limited rations of food, water, toiletries, and medicine, among other

products, have had tensions between the Maduro regime and opposition forces reach

a new boiling point. Already, international organizations along with foreign ministers

and heads of state from around the world have turned their attention to the events

unfolding in Venezuela with deep concern, and an urgency to act upon a volatile

government that appears unfazed at the striking consequences of the economic

policies (or lack thereof) it has implemented.

The Organization of American States (OAS) has already begun to take steps

to resolve the crisis. Despite Venezuela’s status as a Member State of the OAS, it has

construed any opposing point of view from any party within OAS as an affront to its

sovereignty and endangerment to its national security. Moreover, Venezuela has

responded sharply to accusations of human rights violations with threats of military

confrontation among OAS Member States, weakening any means for dialogue and

conflict resolution. The OAS must take urgent action to restore peace in Venezuela.

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History and Main Actors

Context, Causes, Sequence of Events, Effects, Implications, and Stakeholders in the

Crisis

In 1958, the leaders of Venezuela’s top three political parties convened in the

wake of a coup d’état which ousted President Marcos Pérez Jiménez, and weeks

before the subsequent Presidential election to form the Puntofijo Act. Its goal was to

establish a foundation for the existence of and adherence to a national democratic

system of government. In practice, however, it resulted in a power-sharing agreement

between the two largest parties: Acción Democrática (AD) and the Comité de

Organización Política Electoral Independiente (COPEI).

This constituted an issue, as public opinion realized that the act had resulted in

a de facto “partidocracia” (partyarchy)7. This occurred because the most powerful

parties could manipulate the electoral process in order to continue to hold power.

Dissatisfaction and outrage ensued towards a system of governance that did not

obligate those that shared the power at the top to step down8. Over the years, the

perception that the government was not adequately working for its constituents

continued to swell, and in 1998, resulted in a referendum that passed prohibiting the

two main political parties—AD and COPEI—from participating in the 1999 Presidential

election. This paved the way for the success of Hugo Chávez, a vociferous antagonist

of then-establishment political figures and advocate of social programs for the poor.

Thus, began the “Bolivarian Revolution”.

The Bolivarian Revolution consisted of, among others, four central tenets: (1)

the nationalization of the oil industry, (2) the separation of Venezuela from neo-

liberalist capitalist economic powers in a globalized world economy (e.g. the United

States of America), (3) the combatting of corruption, as well as (4) the establishment

of social programs for the poor. During the tenure of Chávez, this was accomplished

during the same time period that saw a rise in the price of Venezuela’s main export

and source of revenue: oil. Despite Venezuela’s abundance of oil—one of the largest

in the world9—mismanagement of those monies resulted in the country running an

unsustainable deficit. Rather than saving and investing the unexpected windfall, the

country expanded its expenditures and began to run a deficit.

7 Coppedge, Michael. "Perspectivas de la gobernabilidad democrática en Venezuela." América Latina Hoy 8 (1994): 63-72. 8 Rivas, José Antonio; 2009. Desinstitucionalización de los partidos y militarización de la política en Venezuela. Reflexión Política 11: 68-80. 9 Elisworth, Brian, and Corina Pons. 2014. "Venezuela Currency Controls Make Scotch Cheap As Milk, Syringes Go Short". Reuters. http://www.reuters.com/article/us-venezuela-economy-idUSKBN0K11KC20141223.

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In 2003, then-President Hugo Chávez established a fixed exchange rate with

the objective of preventing capital flight. However, this strategy quickly backfired,

creating a black market for foreign currency. This resulted in rising prices,

hyperinflation, shortages, capital flight, and skyrocketing unemployment have plagued

the Venezuelan economy resulting in sharp increases in prices for basic goods and

services such as groceries and medical care. In an effort to abate the economic

turmoil, Hugo Chávez infamously executed the “Dakazo” in 2013, directly manipulating

prices to attempt to hide the effects of shortages and high inflation in the Venezuelan

market; however, these efforts failed. Consequently, Venezuela a different strategy

that would serve to soften the blow of these catastrophic economic phenomena:

OPEC. Venezuela is a founding member of the Organization of the Petroleum

Exporting Countries (OPEC). In his capacity, as Venezuelan head of state, Chávez

successfully lobbied many times throughout his tenure to interrupt world oil production

to drive oil prices up, resulting in short bouts of increase in income for the country.

Hugo Chávez passed away on the 5th of March 2013. Seven days of mourning

were declared, and many condemnations soon followed from heads of state

worldwide. His legacy, Venezuela’s unsustainable economic model, was then

inherited to Nicolás Maduro, a leader who largely lacks the charisma and political

dexterity Chávez demonstrated during his administration. Now, the country is on the

brink of financial collapse as oil prices have plunged and remained low for several

years. Additionally, national opposition figures such as Leopoldo López and Henrique

Capriles, founders of an opposing political party named Primero Justicia, have

garnered international attention in their plight for a resolution to Venezuela’s unrest.

President Maduro’s management of the Venezuelan currency and economy

has collapsed domestic markets for basic goods and services as they were sold in a

currency that was losing its value rapidly. One thousand U.S. dollars’ worth of

Venezeulan Bolívares at the beginning of Maduro’s administration were worth

approximately one U.S. dollar in early August 201710. Protests ring in the streets of

Caracas very frequently, and these confrontations often lead to injuries and death.

10 "Venezuela's Weekly Minimum Wage Is Now Only Worth $1.50". 2017. Fortune.Com. http://fortune.com/2017/08/03/venezuela-bolivar-minimum-wage-maduro/.

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Definition of Terms and Legal Instruments

Capital Flight – in economics, exodus or rapid depletion of financial capital

usually due to social, political, or economic instability

Cartel – in economics, an association of manufacturers or suppliers designed

to coordinate economic mechanisms to exert control on supply levels of goods and

services, causing a fluctuation in equilibrium price in a market

Dakazo – government mandated price decreases that took place in 2013,

weeks prior to the Christmas season leading to shortages on goods and services,

named after “Daka”, a Venezuelan electronics retailer

Deficit – when government expenditure exceeds income

Dutch Disease – economic phenomenon that occurs when one sector of a

country’s economy (e.g. oil) experiences a “boom”, increasing demand in the country’s

currency, making imported goods and services cheaper, resulting in the collapse of

non-booming domestic sectors

Foreign Direct Investment – money that is invested by foreign companies

within a country’s economy

Inflation – increased prices in a country’s economy coupled with the fall of

purchasing power of the domestic currency

Hyperinflation – a very high rate of inflation (e.g. 700% inflation) (see inflation)

Organization of Petroleum Exporting Countries (OPEC) – international

organization founded with the purpose of exerting control on the supply and price level

of worldwide oil production [Member States: Algeria, Angola, Ecuador, Equatorial

Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab

Emirates, Venezuela] (see cartel)

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International Response

Organization of American States (OAS)

OAS meetings have borne the brunt of the Venezuelan government’s reaction

towards international pressure regarding their ongoing crisis. A letter issued during the

convention of OAS Member States in Mexico in June of 2017 called for “a settled

solution” inclusive of all Venezuelan parties for the benefit of the Venezuelan people

due to the country’s undermining of democratic processes. In that meeting,

Venezuelan Foreign Minister Delcy Rodriguez accused Mexico of hypocrisy criticizing

the Mexican record on human rights, called critics “lapdogs of imperialism”, accused

Secretary General Almagro of instigating a civil war in Venezuela, asked the OAS “do

you want war?”, and indicated to the United States that the only way they can impose

change in Venezuela is with the use of U.S. Marines, which would be “met with a

strong response” in the country11. OAS Member States have continued, however, to

be vocal in their disapproval of the current state of affairs in Venezuela, and urged the

government to “sit down and negotiate” (Venezuela Rejects, 2017).

United Nations (UN)

The United Nations has begun to put Venezuela under the spotlight for its

alleged violations of human rights. These violations, along with the clashes that occur

in the streets between protestors and opposition forces, have led the UN to urge the

Maduro regime to “relaunch negotiations for the benefit of the country’s people”12i. UN

Secretary-General António Gutierres has been vocal during his short tenure against

the violence occurring in Venezuela as a result of the ongoing crisis.

International Monetary Fund (IMF) & World Bank (WB)

The International Monetary Fund in their “World Economic Outlook” in

April of 2017 released alarming figures that reiterate the severity of the economic

downfall that is currently taking place in Venezuela, and contrasted sharply with the

latest official figures from Venezuela’s legislative body in the absence of official figures

from the Banco Central de Venezuela (BCV)—Venezuela’s central bank. The IMF has

gauged the inflation rate above 700% for the country, while official figures situate the

same rate at 127.8%13. The World Bank’s Vice President for Latin America and the

11 "Venezuela Rejects OAS Criticism: "Do You Want War?"". 2017. Newsweek. http://www.newsweek.com/venezuela-reject-oas-criticism-you-want-war-627816. 12 "UN News - Venezuela: UN Urges Government And Opposition To Relaunch Political Talks". 2017. UN News Service Section. http://www.un.org/apps/news/story.asp?NewsID=57324. 13 International Monetary Fund. World Economic Outlook: Gaining Momentum? Washington, April. (Table A7 on page 208). 2017. "Venezuela Acumula Una Inflación De 127,8 % En 2017, Según El Legislativo". 2017. Telemundo. http://www.telemundo.com/noticias/2017/06/09/venezuela-acumula-una-inflacion-de-1278-en-2017-segun-el-legislativo.

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Caribbean, Jorge Familiar, has said that the World Bank is ready and willing to help

resolve the crisis in Venezuela. Familiar went on to state that the WB has not had any

interactions with Venezuela since then-President Hugo Chávez paid off past loans in

2008. “What we would need is for them to call us,” Familiar said14.

Non-government organizations (NGOs)

In an unprecedented move to demonstrate exasperation over the

alleged inactivity of the United Nations (UN) regarding the humanitarian crisis that

exists in Venezuela, UN Watch (an association that monitors the UN and promote

human rights) strongly urged the UN to take strong action against the Maduro regime

in light of the alleged human rights violations occurring in Venezuela15. The NGOs

included Acción Solidaria, Cáritas Ciudad Bolívar, the United of the Andes’

Observatory on Human Rights, among others.

Foreign Heads of State

Several heads of state have indicated their utmost concern about the crisis in

Venezueula. A spokesperson for the Prime Minister of the United Kingdom Theresa

May called for the Venezuelan government to “respect democracy and human

rights”16. German Chancellor Angela Merkel expressed her “deep concern” over the

situation in Venezuela17. President Donald Trump from the United States of America

levied economic sanctions in August of 2017 on Venezuela with his administration

insinuating the use of a “military option” should the country refrain from restoring the

democratic process. Meanwhile, French President Emmanuel Macron hand-wrote a

letter to Venezuelan President Nicolás Maduro, offering to be an intermediary in peace

negotiations.18.

14 Lawder, David. 2017. "World Bank Ready To Help Venezuela If Asked: Latam Chief". Reuters. http://www.reuters.com/article/us-imf-g20-worldbank-venezuela-idUSKBN17L1IG. 15 "50 Ngos Blast "Silence Of UN Agencies In Venezuela" Over Food Deprivation - UN Watch". 2016. UN Watch.

https://www.unwatch.org/50-venezuelan-ngos-blast-un-cancellation/ 16 "UPDATE 1-UK Says Urgent Action Needed To Stop Venezuela Situation Getting Worse". 2017. Reuters. https://www.reuters.com/article/venezuela-politics-britain-idUSL5N1KT2DB. 17 "Angela Merkel, Preocupada Por Situación De Venezuela". 2017. El Universo.

http://www.eluniverso.com/noticias/2017/06/10/nota/6224269/angela-merkel-preocupada-situacion-venezuela. 18 Nunes, Mélanie, and A.D. 2017. "Venezuela : Macron A Envoyé Une Lettre À Maduro Pour Tenter D'aider Le Pays À Sortir De La Crise". Europe1.Fr. http://www.europe1.fr/international/venezuela-macron-a-envoye-une-lettre-a-maduro-pour-tenter-daider-le-pays-a-sortir-de-la-crise-3402956.

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Current Challenges

The Maduro Regime

Perhaps the most critical challenge the world faces in attempting to resolve the

crisis in Venezuela is the government’s refusal to recognize a state of crisis in the first

place, much less to sit down and negotiate a way out of the situation. To make matters

worse, not only is the country resisting dialogue, but it is leaving organizations

altogether with no interest in furthering discussion. In its frustration with the

international community, after having accused the OAS of being a “pawn” of the United

States of America, Venezuela announced its withdrawal from the OAS—the first time

in the bloc’s history that a Member States willfully quits the body altogether19.

State of the Economy in Venezuela

The Venezuelan economy is in crisis. The country is experiencing an inflation

rate of more than 700% according to the IMF20, and while recent official unemployment

figures are unavailable, estimates indicate approximately a 7% unemployment rate in

the country.21 Additionally, supply shortages and a black market for many products

are now commonplace.

Death and Injury Among Protestors

An August 2017 report revealed that more than 120 people had died because

of the protests in Venezuela. This number in recent months has continued to steadily

increase, urging the attention of the international community. The tragedies are

directly linked with the protests, according to the UN High Commissioner for Human

Rights. A UN team’s findings demonstrated a systematic undermining of human rights

due to the government’s use of security forces to intimidate protestors, “routinely

[breaking] into protests on motorcycles, wielding firearms, and in some cases shooting

people”22.

19 "Venezuela To Quit OAS Regional Bloc As 23Rd Protester Dies | News | DW | 27.04.2017". 2017. Deutsche Welle. http://www.dw.com/en/venezuela-to-quit-oas-regional-bloc-as-23rd-protester-dies/a-38605141. 20 International Monetary Fund. World Economic Outlook: Gaining Momentum? Washington, April. (Table A7 on page 208). 2017. 21 Chinea, Eyanir. 2017. "Job Losses, Low Wages Add To Venezuela Economic Hardship". U.S.. http://www.reuters.com/article/us-venezuela-economy/job-losses-low-wages-add-to-venezuela-economic-hardship-idUSKBN16926M. 22 Hanna, Jason, and Sarah Faidell. 2017. "UN: Venezuelan Protesters Endure Excessive Force". CNN. http://www.cnn.com/2017/08/08/americas/venezuela-unrest/index.html.

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Questions an Outcome Document Should Answer

The following questions are to serve as a guide for your working papers and

resolutions.

1. What should a solution for Venezuela envision to remain consistent with

the Charter of the Organization of American States (OAS) such as

human rights violations and the preservation of democratic processes?

2. At what point should an international organization such as the OAS

prioritize the preservation of human rights over national sovereignty? Is

there a case for intervention?

3. How can compliance of the Venezuelan government with any OAS

Resolution be ensured?

4. What are the penalties for failure to comply with OAS rules and

procedures for delegates and Member States?

5. What fiscal or economic policy would you suggest to resolve the

economic crisis in Venezuela?

6. Is the state of affairs within Venezuela and between the country and

international organizations unprecedented? If not, what has worked in

the past?

7. Where will funding come from for your proposed solution(s)?

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Further Readings

The following literary resources are to supplement your knowledge, and does not

constitute a comprehensive list of research on the topic.

Bahar, Dany. 2017. Crisis in Caracas, unrest in Venezuela Fred Dews

Interview by Radio. The Brookings Institution.

Description: A research fellow from Brookings Institution offers his

analysis and recommendations on the crisis in Venezuela.

Transcript:

https://www.brookings.edu/wpcontent/uploads/2017/07/bcp_20170721

_bahar.pdf

Hanke, Steve H. 2017. "On Venezuela's Death Spiral". Cato Institute.

Link: https://www.cato.org/publications/commentary/venezuelas-death-

spiral.

Description: A senior fellow at the Cato Institute offers his perspective

on a possible way out of the Venezuelan crisis.

Rivas, José Antonio; 2009. Desinstitucionalización de los partidos y

militarización de la política en Venezuela. Reflexión Política 11: 68-80.

Description: Description of political factors that led to the rise of populism

and Chavismo in Venezuela.

Link: http://www.redalyc.org/articulo.oa?id=11012487006

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Bibliography

"Angela Merkel, Preocupada Por Situación De Venezuela". 2017. El Universo. http://www.eluniverso.com/noticias/2017/06/10/nota/6224269/angela-merkel-preocupada-situacion-venezuela.

Bermúdez, Ángel. 2017. "Cómo Venezuela Pasó De La Bonanza Petrolera A La

Emergencia Económica - BBC Mundo". BBC Mundo. http://www.bbc.com/mundo/noticias/2016/02/160219_venezuela_bonanza_petroleo_crisis_economica_ab.

Boyer, Dave. 2017. "Donald Trump Imposes New Financial Sanctions On

Venezuela". The Washington Times. http://www.washingtontimes.com/news/2017/aug/27/donald-trump-imposes-new-financial-sanctions-on-ve/.

Chinea, Eyanir. 2017. "Job Losses, Low Wages Add To Venezuela Economic

Hardship". U.S.. http://www.reuters.com/article/us-venezuela-economy/job-losses-low-wages-add-to-venezuela-economic-hardship-idUSKBN16926M

Elisworth, Brian, and Corina Pons. 2014. "Venezuela Currency Controls Make

Scotch Cheap As Milk, Syringes Go Short". Reuters. http://www.reuters.com/article/us-venezuela-economy-idUSKBN0K11KC20141223.

Hanna, Jason, and Sarah Faidell. 2017. "UN: Venezuelan Protesters Endure

Excessive Force". CNN. http://www.cnn.com/2017/08/08/americas/venezuela-unrest/index.html.

International Monetary Fund. World Economic Outlook: Gaining Momentum?

Washington, April. (Table A7 on page 208). 2017. Lawder, David. 2017. "World Bank Ready To Help Venezuela If Asked: Latam

Chief". Reuters. http://www.reuters.com/article/us-imf-g20-worldbank-venezuela-idUSKBN17L1IG.

Nunes, Mélanie, and A.D. 2017. "Venezuela : Macron A Envoyé Une Lettre À

Maduro Pour Tenter D'aider Le Pays À Sortir De La Crise". Europe1.Fr. http://www.europe1.fr/international/venezuela-macron-a-envoye-une-lettre-a-maduro-pour-tenter-daider-le-pays-a-sortir-de-la-crise-3402956.

Oxford Dictionaries, s.v. “cartel”, accessed August 26, 2017,

https://en.oxforddictionaries.com/definition/cartel Rivas, José Antonio; 2009. Desinstitucionalización de los partidos y militarización de

la política en Venezuela. Reflexión Política 11: 68-80.

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"UN News - Venezuela: UN Urges Government And Opposition To Relaunch Political Talks". 2017. UN News Service Section. http://www.un.org/apps/news/story.asp?NewsID=57324.

"UPDATE 1-UK Says Urgent Action Needed To Stop Venezuela Situation Getting

Worse". 2017. Reuters. https://www.reuters.com/article/venezuela-politics-britain-idUSL5N1KT2DB.

"Venezuela Acumula Una Inflación De 127,8 % En 2017, Según El Legislativo".

2017. Telemundo. http://www.telemundo.com/noticias/2017/06/09/venezuela-acumula-una-inflacion-de-1278-en-2017-segun-el-legislativo.

"Venezuela Rejects OAS Criticism: "Do You Want War?"". 2017. Newsweek.

http://www.newsweek.com/venezuela-reject-oas-criticism-you-want-war-627816.

"Venezuela To Quit OAS Regional Bloc As 23Rd Protester Dies | News | DW |

27.04.2017". 2017. Deutsche Welle. http://www.dw.com/en/venezuela-to-quit-oas-regional-bloc-as-23rd-protester-dies/a-38605141.

"50 Ngos Blast "Silence Of UN Agencies In Venezuela" Over Food Deprivation - UN

Watch". 2016. UN Watch. https://www.unwatch.org/50-venezuelan-ngos-blast-un-cancellation/.

18

TOPIC B: Review of the Actions Against Corruption (IACAC and MESICIC)

Introduction

Nowadays the words “corruption” and “Latin America” seem to be linked in

almost all newspapers headlines. Several major corruption scandals, such as the

Petrobras and Odebrecht cases, have been unveiled in the last couple of years (Watts

2017) (Lopez 2017). But not only Brazil was subject of concerns because of schemes

that affect greatly the credibility of its institutions, Mexico, Chile, Argentina, Venezuela

and Colombia are dealing with the consequences of nepotism, fraud and blackmail

(The Economist 2015).

This phenomenon raises two questions: are the actions against corruption

pursued by the international community appropriate and sufficient to confront the

corruption wave in the American continent? Is the current situation an indication that

society is reacting differently to corruption as it did in the past? How can the OAS use

this as an opportunity to engage in a more inclusive fight against corruption?

The fight against corruption in the American continent is determined by two

international conventions, the United Nations Convention Against Corruption and the

Inter-American Convention Against Corruption. These instruments include several

measures which affect national legislation of their Member States (Altamirano 2007).

From prevention to criminalization both instruments aim to raise awareness about the

different forms corruption can take.

Although the last couple of years have been marked by major corruption

scandals which damaged economic development and sustainability in the countries

affected, the fact that the schemes came to light and that the civil society reacted

strongly against them gives some hope. The traditional Latin-American ideology that

supports corruption because “it gets things done” seems to be shifting towards a claim

for transparency (Thomson 2016). The competent authorities have also been active,

which can be interpreted as a positive development that reinforces the importance of

the international efforts.

Despite the advances already made, the Americas scored 44 out of 100 on the

2016 Corruption Perception Index. According to Transparency International “Anything

below 50 indicates governments are failing to tackle corruption” (Ebrard, Transparency

International 2017). The OAS need to review the efforts already made to eradicate

corruption and identify what approach has delivered results and what changes to the

current strategy are necessary to tackle this problem.

19

History and main actors

According to Transparency International, corruption is commonly associated

with bribery, but it isn’t limited to that. It also includes fraud, networking, extortion and

blackmail. This NGO defines corruption as “the misuse of entrusted power for private

gain” (Transparency International 2017). The World Bank approaches the topic stating

that “corruption is the exercise of public power for private gain” (Governance 2003).

Both definitions have in common that the misused power is attached to some

legitimacy conferred to administrative instances by the civil society.

The development of a country is strongly linked to trustworthy and well-

functioning public institutions. Economic growth and sustainable development is at

stake when public institutions are compromised due to dishonest public officers, a non-

transparent private sector, and a permissive non-reactive society that worsen the

problem.

In conclusion, every effort to tackle corruption should include measures that

criminalize all its modalities and involve the stakeholders of the issue: public officers,

private sector and civil society.

Brazil has been an incubator for many corruption cells. For example, the oil

giant Petrobras had been overpricing projects and purchases for a period of

approximately 10 years. The exceeding money went to politicians and off shore

accounts (Rapoza 2017). The Odebrecht corruption scandal is another example of

institutionalized corruption. The Brazilian construction company had a division

dedicated only to develop strategies to bribe public officials (Lopez 2017). Since

Odebrecht operated in many countries of the American continent, investigations are

being held in Colombia, Argentina, Venezuela, Panamá among others, to establish

who was involved in the misuse of power, and how can institutions be more resilient

to bribes (CNN Español 2017).

Brazilians reacted with major protest and demanded legal prosecution of the

people involved in the scheme (Watts, The Guardian 2017). Consequences involve

Dilma Rousseff being removed from office in 2016 and the Worker’s Party dramatically

losing popularity (Watts, The Guardian 2016).

Sadly, not only private companies are the target of investigations for corruption-

related actions. In Colombia, a worrying process is being conducted against former

presidents of the Colombian Supreme Court of Justice which allegedly received large

sums of money in exchange for specific judgments. The accusations include nepotism,

conflict of interests and fraud (Colprensa 2017).

20

Aware of the current situation, the OAS is joining efforts with governments,

NGOs and civil society to fight corruption in the American continent. Honduras, a

country in which “all sectors of economy suffer from rampant corruption” (GAN Integrity

2016), is subject to a special mission of the OAS: The Mission to Support the Fight

against Corruption and Impunity in Honduras. The mission’s goal is “to support the

country in combating corruption and impunity from an integral vision” (OAS 2017). This

kind of strategies can raise awareness about the consequences of corruption and

encourage all stakeholders to take concrete actions against corruption in their

everyday life.

International Response

UN efforts

The fight against corruption is carried out universally. The UN Convention

against Corruption entered into force the 14th December 2005. It is the only legally

binding universal anti-corruption instrument.23

The reinforcement of the UN position towards corruption is set in the

Sustainable Development Goals target, on its Goal 16: “the promotion of peaceful and

inclusive societies for sustainable development, the provision of access to justice for

all, and building effective accountable institutions at all levels”. Some of the targets of

Goal 16 are:

Substantially reduce corruption and bribery in all their forms

Develop effective, accountable and transparent institutions at all levels

Ensure responsive, inclusive, participatory and representative decision-making

at all levels

Broaden and strengthen the participation of developing countries in the

institutions of global governance

Actions of the OAS

The OAS was pioneer in the codification of an international instrument with the

objective to fight corruption (Altamirano 2007). The organization tried to comply with

Article 4 of the Inter-American Democratic Charter (IADC) by consenting on the Inter-

American-Convention Against Corruption (IACAC). Art. 4 of the IADC states that

“Transparency in government activities, probity, responsible public administration (…)

are essential components of the exercise of democracy. The constitutional

subordination of all state institutions to the legally constituted civilian authority and

23 https://www.unodc.org/unodc/es/treaties/CAC/

21

respect for the rule of law on the part of all institutions and sectors of society are

equally essential to democracy.”24

Combating corruption in the Member States is one of the preconditions to

ensure long lasting effective democratic governance. As an early recognition of this

fact, the Member States of the OAS adopted the Inter-American Convention Against

Corruption (IACAC) in 1996. The purposes of the Convention are to promote and

strengthen the development by each of the State Parties of the mechanisms needed

to prevent, detect, punish and eradicate corruption and to promote, facilitate and

regulate cooperation among the State Parties to reach this goal.25

The OAS established an intergovernmental body to support the State Parties

in the implementation of the provisions of the Convention called Mechanism for

Follow-Up on the Implementation of the Inter-American Convention against

Corruption (MESICIC).26 The objectives of the MESICIC are the following:

Promote the implementation of the Convention and contribute to the

achievement of its purposes;

Follow-up on the commitments assumed by the States Parties and analyze the

way they are being implemented; and

Facilitate technical cooperation activities; the exchange of information,

experiences and best practices; and the harmonization of the legislation of the

States Parties (OAS 2011).

The MESICIC recognizes the principles of sovereignty; non-intervention; and

juridical equality of the states. This means that the sovereign nations, and not the OAS

as organization, are the responsible entities for the actions necessary to fight

corruption. Therefore, it is important to promote the principle of national ownership in

every strategy designed at the OAS forum.

The evaluation of the advantages made by each party to the IACAC is made

within the framework of the MESICIC trough reports and reciprocal evaluation.

24 http://www.oas.org/charter/docs/resolution1_en_p4.htm 25 http://www.oas.org/en/sla/dil/inter_american_treaties_B-58_against_Corruption.asp 26 http://www.oas.org/juridico/english/mesicic_intro_en.htm

22

Current challenges

The development of a country is strongly linked to trustworthy and well-

functioning public institutions. Each Member Sate of the MESICIC has now the

responsibility to elaborate on the recommendations made on the review process.

Since corruption is linked to other forms of crime it is topical that the

international community also addresses specially drug related crimes aggravated by

corruption.

Whistleblowing, Bank’s duty to maintain confidentiality, information exchange

and legal assistance are soft measures that need to be strengthened by the Member

States of the IACAC.

Questions an Outcome Document Should Address

1. What are still the major problems present at all Member States and how

can they be confronted?

2. How can public institutions be more resilient to the threat of corruption?

Are preventive measures viable in all countries? How can preventive

measures be adapted to each Member States?

3. Are the criminalization measures of the MESICIC sufficient, or is it

necessary to implement new measures?

4. How can be the civil society be more involved in anti-corruption

initiatives? How can governments support citizens to be not only active

observers but also to take concrete action in the fight against corruption?

5. How can be the warning systems to prevent and combat international

corruption enhanced?

6. What measures can be implemented to protect whistleblowers to

encourage people to speak up?

7. How can the review process of the IACAC be more inclusive of the civil

society?

23

Further readings

General information on corruption and how to fight it collectively:

https://www.unglobalcompact.org/docs/issues_doc/Anti-

Corruption/CollectiveAction2010.pdf

For some ideas on how to fight corruption: OECD, 2017 OECD Global Anti-

Corruption & Integrity Forum, https://www.oecd.org/cleangovbiz/integrity-

forum-2017.htm

For more information about Sustainable Development Goal 16 consult:

http://www.un.org/sustainabledevelopment/wp-content/uploads/2017/01/16-

00055p_Why_it_Matters_Goal16_Peace_new_text_Oct26.pdf

For a philosophic approach to the topic:

https://plato.stanford.edu/entries/corruption/

Anti-Corruption Glossary: https://www.transparency.org/glossary

Message of the Secretary General of the OAS in commemoration of 20 years

of the Inter-American Convention Against Corruption:

https://vimeo.com/209979692

24

Bibliography

CNN Español. 2017. CNN. 10 de February. Último acceso: 9 de September de

2017. https://cnnespanol.cnn.com/2017/02/10/el-escandalo-de-sobornos-de-

odebrecht-asi-es-el-caso-en-cada-pais-de-latinoamerica-afectado/.

Colprensa. 2017. El País. 15 de August. Último acceso: 9 de September de

2017. http://www.elpais.com.co/colombia/denuncian-a-tres-expresidentes-de-la-

corte-suprema-de-justicia-por-presunta-corrupcion.html.

Lopez, Linnette. 2017. Business Insider. 30 de May. Último acceso: 27 de

August de 2017. http://www.businessinsider.com/what-is-the-odebrecht-corruption-

scandal-2017-5.

Altamirano, Giorleny D. 2007. « The Impact of the Inter-American Convention

Against Corruption.» Miami Inter-Am. L. Rev. (38): 487-547.

El Espectador. 2017. El Espectador. 16 de August. Último acceso: 30 de

August de 2017. http://www.elespectador.com/noticias/judicial/investigacion-contra-

gustavo-moreno-por-corrupcion-aterrizo-en-la-corte-suprema-articulo-708329.

Ebrard, Jessica. 2017. Transparency International. 25 de January. Último

acceso: 30 de August de 2017.

https://www.transparency.org/news/feature/americas_sometimes_bad_news_is_goo

d_news.

GAN Integrity. 2016. GAN Bussiness Anti Corruption Portal. August. Último

acceso: 9 de September de 2017. http://www.business-anti-corruption.com/country-

profiles/honduras.

Governance, Matters III. 2003. «Governance Indicators for 1996-2002.» World

Bank. Último acceso: 27 de Augugst de 2017. http:/

www.worldbank.org/wbi/governance/pubs/govmatters3.html.

OAS. 2011. Department of Legal Cooperation of the OAS. Último acceso: 9 de

September de 2017. http://www.oas.org/juridico/english/mesicic_intro_en.htm.

—. 2017. OAS. Último acceso: 10 de September de 2017.

http://www.oas.org/en/spa/dsdsm/maccih/new/mision.asp.

Rapoza, Kenneth. 2017. Forbes. 29 de August. Último acceso: 9 de September

de 2017. https://www.forbes.com/sites/kenrapoza/2017/08/29/brazils-petrobras-not-

a-victim-of-corruption-but-a-participant/#63817ac064c2.

25

The Economist. 2015. 12 de March. Último acceso: 29 de August de 2017.

https://www.economist.com/news/americas/21646272-despite-epidemic-scandal-

region-making-progress-against-plague-democracy.

Thomson, Stephanie. 2016. World Economic Forum. 15 de June. Último

acceso: 30 de August de 2017. https://www.weforum.org/agenda/2016/06/corruption-

in-latin-america/.

Transparency International. 2017. Transparency International. 25 de January.

Último acceso: 27 de August de 2017.

https://www.transparency.org/news/feature/corruption_perceptions_index_2016.

Usi, Eva. 2017. Deutsche Welle América Latina. 30 de August. Último acceso:

30 de August de 2017. http://www.dw.com/es/cada-dos-horas-desaparece-una-

persona-en-méxico/a-40298740.

Watts, Jonathan. 2017. The Guardian. 1 de June. Último acceso: 27 de August

de 2017. https://www.theguardian.com/world/2017/jun/01/brazil-operation-car-wash-

is-this-the-biggest-corruption-scandal-in-history.

—. 2016. The Guardian. 1 de September. Último acceso: 8 de August de 2017.

https://www.theguardian.com/world/2016/aug/31/dilma-rousseff-impeached-

president-brazilian-senate-michel-temer.

26

Sample Outcome Document

The document below27 serves as an example of what resolutions emitted

from the Organization of American States looks like. You will notice that there are

some differences between resolutions from the OAS and the United Nations. In the

United Nations, resolutions specify which committee it belongs to, whether it be the

General Assembly, Security Council, Food and Agriculture Organization, etc. Within

the OAS, there are two “committees”, the General Assembly and the Permanent

Council. Additionally, within the General Assembly, there are “Regular” and “Special”

sections.

Things to Remember

Please observe the punctuation that is used throughout the resolution. Be

mindful of when to use periods, commas, colons, and semicolons, as well as

indentation, alignment, and the use of capital letters throughout your document.

Similar to the United Nations, the OAS has resolutions that contain

preambulatory and operative clauses.

o Preambulatory clauses are found in the preamble of the resolution. The

objective of the preambulatory clauses is to clarify the reasons why the

topic is being pursued, and context or history on the topic.

o On the other hand, operative clauses contain the plans and action your

resolution will execute.

Additionally, the OAS observes acronyms in Spanish; therefore, the

Organization of American States is OEA (Organización de Estados

Americanos). “Permanent Council” is CP, or Consejo Permanente in Spanish

in the document below.

27 Permanent Council of the Organization of American States Resolution 1078, Resolution on the Recent Events in Venezuela, CP/RES. 1078 (2108/17) (3 April 2017), available from http://www.oas.org/en/media_center/press_release.asp?sCodigo=E-022/17

27

PERMANENT COUNCIL

OEA/Ser.G

CP/RES. 1078 (2108/17)

3 April 2017

Original: English

CP/RES. 1078 (2108/17)

RESOLUTION ON THE RECENT EVENTS IN VENEZUELA

(Adopted by the Permanent Council at its session held on April 3, 2017)

THE PERMANENT COUNCIL OF THE ORGANIZATION OF AMERICAN STATES,

REITERATING the principles and recalling the mechanisms established in the Charter of the

Organization of American States and the Inter-American Democratic Charter on the strengthening and

preservation of the democratic institutional system in Member States;

REAFFIRMING that the promotion and protection of human rights and fundamental freedoms

are a basic prerequisite for the existence of a democratic society;

REAFFIRMING also that separation of powers and independence of the branches of

government are essential elements of representative democracy;

EXPRESSING our grave concern regarding the unconstitutional alteration of the democratic

order in the Bolivarian Republic of Venezuela and our continuous support for dialogue and negotiation

to lead to a peaceful restoration of democratic order,

DECLARES that:

1. The decisions of the Supreme Court of Venezuela to suspend the powers of the National

Assembly and to arrogate them to itself are inconsistent with democratic practice and constitute an

alteration of the constitutional order of the Bolivarian Republic of Venezuela. Notwithstanding the

recent revision of some elements of these decisions, it is essential that the Government of Venezuela

ensures the full restoration of democratic order.

RESOLVES:

1. To urge action by the Venezuelan government to safeguard the separation and

independence of powers and to restore full constitutional authority to the National Assembly.

2. To stand ready to support measures to return to democratic order through the effective

exercise of democracy and rule of law within the Venezuelan constitutional framework.

3. To remain seized of the situation in Venezuela and to undertake as necessary further

diplomatic initiatives to foster the restoration of the democratic institutional system, in accordance with

the Charter of the Organization of American States and the Inter-American Democratic Charter,

including the convening of a ministerial meeting.